Alliant Health System: A Vision of Total Quality
1. Is Alliant’s strategy Sound? What does it have to do well to succeed?
a. No strategy is totally sound.
b. On paper, Alliant’s strategy would seem sound but, even though over the past five years they have made progress, Alliant has hit a few snags along the way that has prevented their strategy from becoming truly sound.
i. They have only been able to lay down a foundation.
c. Alliant is faced with “a culture and a climate that is inhospitable to the TQM philosophy.”
ii. CEO Wolford states the he cannot “point to any one area that demonstate[s] we are substantially better than our competition.” ...view middle of the document...
2. How well have they implemented the quality strategy?
j. Alliant came up with guiding principles and a 10-point action plan to help introduce TQM to the organization through quality management teams (QMT).
vi. Alliant was thorough in making sure their quality strategy was implemented systematically through targeted programs and processes that would help their “organization achieve a competitive advantage based on the management of quality. “
vii. They implemented the quality stategy well in the first year because after Petersdorf died in 1987, “quality had already taken root” and “one of the board’s primary selectin criteria for Petersdorf’s replacement was a commitment to total quality management.”
k. In the second year of implementation, Alliant saw their most profitable year in the history of the company.
l. Four components of TQM strategy were implemented pretty well:
viii. CARES+ process “diffused rapidly across Alliant”; Were “making the transition from traditional planning to quality improvement”; found quality planning process to be highly effective
ix. EQUIP allowed employees to voice their ideas; helped communicate between employees, managers, and executives
x. Quality Improvement Teams “prescribed specific analytical tools and walked a team from problem statement through actions, results, and future plans”; drilled right to the core of performance issues; applied statistical process control techniques to cash flow to bring the receivables range down
xi. Critical Paths worked; was able to shorten length of hospital stay for coronary artery bypass graft surgeries from 17 days to 13 days and reduced average costs from $41,863 to $35,843; saved Alliant almost $1 million in 1990; moves process along if everyone works with the same time frame in mind
Assess Alliant’s information technology agenda/strategy.
m. Believed information technology (I/T) is a key in the future strength of TQM
n. Need “expert systems – computers to help the mind”
o. “Was a shift in focus: to patient-oriented systems rather than functional, “stove pipe”...